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Suppose a company sells a new 1,000 face value bond to investors in the primary market. The annual coupon rate is 5%. The yield to

Suppose a company sells a new 1,000 face value bond to investors in the primary market. The annual coupon rate is 5%. The yield to maturity is 5%. Coupon interest payments are made annually. What is the price investors are paying for this new bond?

1000

something higher than 1000

something lower than 1000

any of the above could be true

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